Since the beginning of April , Brent crude price is down by 10% and WTI crude price is down by 11%. Below are the key factors behind the recent fall in crude prices:
1. Global Economic Slowdown and Trade Tensions
-
The International Energy Agency (IEA) has reduced its forecast for global oil demand growth in 2025 by 0.3 MMBD to 0.73 MMBD citing economic risks from U.S. trade tariffs.
2. Increased Oil Supply
-
OPEC+ members have decided to increase oil production by 411,000 barrels per day starting in May 2025, adding to global supply and exerting downward pressure on prices.
3. Market Volatility and Investor Sentiment
-
Goldman Sachs has warned that Brent crude prices could fall below $40 per barrel in an extreme scenario, reflecting heightened market volatility and investor concerns.
-
The recent stock market crash , driven by fears of a global recession, has also impacted oil prices as investors reassess risk and demand outlooks.
